Allocate 340B Program Profits: Direct profits obtained through the federal 340B Drug Pricing Program to reduce out-of-pocket expenses for low-income patients.
Implement Specific Profit Distribution:
55% of 340B profits must be used to decrease out-of-pocket costs for 340B drugs dispensed or administered to low-income patients.
40% of 340B profits must be used to decrease other out-of-pocket costs for low-income patients.
Ensure Minimal Out-of-Pocket Costs at Point of Sale:
Patients with household incomes at or below 100% of the federal poverty line pay $0 out-of-pocket.
Patients with household incomes above 100% but below 200% of the federal poverty line pay no more than $3 out-of-pocket.
Prohibit Use of 340B Profits for Certain Expenses: Including excessive compensation, tax penalties, advertising, lobbying, travel, and gifts.
Mandate Annual Reporting: Nonprofit hospitals must report details regarding:
Participation in the 340B program.
Utilization of 340B profits.
Provision of charity care.
Payments to third parties for 340B-related services and compliance.
Use of contract pharmacies.
This legislation aims to enhance transparency and ensure that the financial benefits derived from the 340B program are utilized to directly support low-income patients by reducing their healthcare costs.
Summary
The bill requires nonprofit hospitals (hospitals) to use 340B profits
to decrease out-of-pocket costs for low-income patients.
The bill requires entities covered under the federal 340B drug
pricing program that are hospitals licensed by the state to report information related to their participation in the 340B program, their use of 340B program profits, their provision of charity care, their payments to third parties for 340B program-related services and compliance, and their use of contract pharmacies.
